SPX Daily Chart Sideways Channel

The cat and mouse sideways drama game continues. The SPX pops above 2072 on Friday only to fall on its sword ending at 2055. That higher price high comes with the chart indicators moving sideways and continuing to exhibit sideways behavior. The blue lines squeeze in slowly forming a long drawn out triangle pattern. Price drops on Friday to back test the upper blue rail so it will bounce or die tomorrow from 2055. The thinner blue upper trend line combines with the 50-day MA at 2044 that will need back kissed at some point forward so price may come back to explore the 2044-2046 support level.

The strongest S/R is 2094, 2091, 2088, 2082, 2079, 2075-2076, 2067, 2061, 2046, 2040, 2038, 2032, 2030, 2023, 2019, 2011, 2002-2003, 1997-1998, 1993, 1988, 1985-1986 and 1982. The pink channel in place this year is 1988-2061 and can even be extended as a three-month sideways channel. Bulls win big above the 2061-2067 level. Bulls win very big above 2075-2076 since a test of new all-time highs will be next. Bears win big under 2050 since this was Friday's low print. Bears win very big if the 50-day MA at 2044 fails.

Stocks are wandering aimlessly through the year thus far waiting for perhaps a catalyst to occur to push it in a specific direction. The ECB QE is expected to keep the party alive and the rally over the last few days is due to the Draghi money bazooka. There is also a potential H&S pattern in play with the right shoulders forming at the 2061-2067 area so watch to see if the head and shoulders pattern develops; a rupture of the 1975 neckline for the H&S with head at 2094 will target 1856 a retest of the October lows. The choppy erratic price action continues in the daily time frame. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.